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Sunday, Jun 01, 2025
Outside the box.
Trump Endorses US-Japan Steel Partnership During Pittsburgh Rally
Former President Donald Trump shifts stance on Nippon Steel's interest in US Steel, marking a significant development in US-Japan economic relations.
Donald Trump is set to address a rally in Pittsburgh, Pennsylvania, to highlight what he describes as a burgeoning 'partnership' between United States Steel Corporation and Nippon Steel, a Japanese steel manufacturer.
This event comes amid the backdrop of Trump's previous vocal opposition to Nippon Steel's proposed $14.9 billion acquisition of US Steel, which he staunchly opposed throughout last year, citing concerns over national security and economic integrity.
In the final weeks of his presidency, Joe Biden blocked Nippon Steel's acquisition, leaning on national security considerations.
This year, the Trump administration revisited the proposal, though specifics regarding the new understanding between the companies and what led to the changes in stance have not been detailed by the White House.
During his campaign, Trump expressed strong opposition to the sale of US Steel to a Japanese entity, emphasizing the importance of American jobs and industries.
At a rally in Saginaw, Michigan, in October, he warned voters, 'They want to strip us of our wealth and, seeing our companies being sold off to foreign countries all the time...
And how about US Steel?
I’m not going to let them sell US Steel.' Trump's opposition continued even after his election victory, where in a December social media post, he reiterated his stance against the bid from Nippon Steel, declaring he would block the deal as president.
A critical shift occurred following a meeting Trump had with Japan's Prime Minister in February, where he mistakenly referred to Nippon Steel as 'Nissan'.
He then announced plans for Nippon to invest in US Steel, clarifying that it would not be a direct purchase but rather a collaborative investment.
Recently, Trump confirmed on social media that he would approve what he termed a 'planned partnership' between the two steel companies, although it remains unclear what specific arrangements differ from the originally proposed acquisition.
Union leaders, notably from the United Steelworkers (USW), have expressed confusion regarding the terms of this partnership, stating that they have not been informed of any meaningful changes from the prior merger proposal.
USW representatives noted, 'At this time, we cannot say whether the “planned partnership” described...
represents any meaningful change from the merger proposed in 2023, under which Nippon Steel would acquire U.S. Steel and make it a wholly owned subsidiary.' Nippon Steel consistently maintained its position that it would only invest in US Steel if it owned the company outright, raising questions about the trajectory of negotiations.
Additionally, Trump's rally coincided with ongoing discussions around critical industry partnerships that could reshape the landscape of the US steel market, especially in light of increasing geopolitical tensions and competition with international firms.
This event comes amid the backdrop of Trump's previous vocal opposition to Nippon Steel's proposed $14.9 billion acquisition of US Steel, which he staunchly opposed throughout last year, citing concerns over national security and economic integrity.
In the final weeks of his presidency, Joe Biden blocked Nippon Steel's acquisition, leaning on national security considerations.
This year, the Trump administration revisited the proposal, though specifics regarding the new understanding between the companies and what led to the changes in stance have not been detailed by the White House.
During his campaign, Trump expressed strong opposition to the sale of US Steel to a Japanese entity, emphasizing the importance of American jobs and industries.
At a rally in Saginaw, Michigan, in October, he warned voters, 'They want to strip us of our wealth and, seeing our companies being sold off to foreign countries all the time...
And how about US Steel?
I’m not going to let them sell US Steel.' Trump's opposition continued even after his election victory, where in a December social media post, he reiterated his stance against the bid from Nippon Steel, declaring he would block the deal as president.
A critical shift occurred following a meeting Trump had with Japan's Prime Minister in February, where he mistakenly referred to Nippon Steel as 'Nissan'.
He then announced plans for Nippon to invest in US Steel, clarifying that it would not be a direct purchase but rather a collaborative investment.
Recently, Trump confirmed on social media that he would approve what he termed a 'planned partnership' between the two steel companies, although it remains unclear what specific arrangements differ from the originally proposed acquisition.
Union leaders, notably from the United Steelworkers (USW), have expressed confusion regarding the terms of this partnership, stating that they have not been informed of any meaningful changes from the prior merger proposal.
USW representatives noted, 'At this time, we cannot say whether the “planned partnership” described...
represents any meaningful change from the merger proposed in 2023, under which Nippon Steel would acquire U.S. Steel and make it a wholly owned subsidiary.' Nippon Steel consistently maintained its position that it would only invest in US Steel if it owned the company outright, raising questions about the trajectory of negotiations.
Additionally, Trump's rally coincided with ongoing discussions around critical industry partnerships that could reshape the landscape of the US steel market, especially in light of increasing geopolitical tensions and competition with international firms.
